Iāve been beating the drum for months that creating a system that advantages a few small catholic schools on the Acela corridor to such an insane degree would be an absolute disaster for the sport.
Which also makes me positive that the NCAA will lean into it headlong.
This is all sorta fascinating. And why itās hard to see an equilibrium short of a federal law. And Iām skeptical we can get a federal law on this in the near term (but maybe we can, we shall see).
https://x.com/andy_staples/status/1924658700943290504?s=46&t=60E4X0iAKwGj-OEWmmLivA
My guess?? Absolutely not in a million years lol
The AG would make himself governor over the caseā hell heād probably win on the merits before the media circus even ensued.
Also donāt see the Texas or Florida schools complying. Not sure about Georgia and the Alabama ones. Really no reason to once one bucks it though (unless you want to pull the Clemson and sort of free ride off FSUās legal bills). Kentucky is also interesting because they just turned their athletic department into a corporation. How does that work with this type of agreement? Also curious how that works with taxes for that entity..
Staples is also saying Tennessee wants to use this as a cudgel to get collective bargaining, hope it works!
https://x.com/andy_staples/status/1924807922237804884?s=46&t=60E4X0iAKwGj-OEWmmLivA
The collective bargaining thing is interesting but the leverage is a bit orthogonal
So threaten to blow up the House settlement (which I think is what this effectively is) unless you get collective bargaining from a third party (Congress) whose actions are pretty much impossible to control? I mean, thatād be pretty crazy but crazy stuff happens every day I suppose.
Iām kinda enjoying the train wreck. I figure every new destructive development hastens our arrival at āthe other sideā of all this. Until then, may as well enjoy the show.
NIL done turned this man into a Mormon.
Itās a for profit LLC, so tax treatment is the same as any other LLC. Even if it was part of the university, itād probably be subject to UBIT, so the athletics income would still be subject to tax.
This will be the funniest line I hear all day lol
Not my legal area, but seems to me that the Tennessee law is trying to regulate interstate commerce, which, if I remember correctly, is specifically reserved for Congress and the federal government.
āSuch a concept is actually addressed in Tennesseeās state law. The law prevents an athletic association from adopting and enforcing rules that violate state law and prohibits any association from āinterferingā with a schoolās membership status, voting rights and revenue distribution.ā
This seems like the state of Tennessee is telling a non-Tennessee entity how and with whom it must conduct business with. Is it any different than Texas passing a law saying any businesses currently buying computers from Dell and selling products into Texas must always buy computers from Dell?
Re: taxing the LLC, thatās sort of what I figured, but that sounds like a bad financial decision for them then?
Re: interstate commerce regulation, yeah I hear you there and am definitively not a lawyer, but it sounds like an anti-trust thing preventing athletes from achieving their fair market value. I guess thatās not really the Tennessee AGās department, will need an athlete to sue, but I would still fully expect the āProtect our VOLSā lawsuit from an enterprising state politician.
I think the main purpose of the LLC isnāt tax motivated, but rather to legally segregate athletics from the rest of the university, shielding the school from exposure to liability. And maybe FOIA requests. And possibly tax.
Hereās an article that talks about non-profit UBIT (unrelated business income tax) in relation to college athletics. I know thereās some provisions in the proposed tax package related to schools and some related to UBIT, but I canāt remember if this particular point was addressed. But maybe UT is anticipating it and wanted to make its financial reporting life easier.
https://taxpolicycenter.org/taxvox/why-are-big-time-college-sports-revenues-exempt-income-tax
Hell, for 8 million dollars, Iāll turn Mormon, too. Iāll even wear the underwear.
Anyone hear of the Rick pitino and St. Johnās rumor??? See stuff floating around @HoozGotNext
Well what are the rumors
You donāt want to know
I apparently have not heard, no.
What does it have to do with NIL?
Guess bc he was tampering with kids within his conference, while they were still on those teams
Doesnāt seem to line up with Daveās āyou donāt want to knowā
All I see are: